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Indonesia jacking up spending on infrastructure

Publication Date : 04-06-2014


Indonesian Finance Minister Chatib Basri says that the government is going to increase the budget allocation for infrastructure spending in the 2015 state budget in a bid to enhance the country's global  competitiveness.

In addition, he said that better infrastructure would improve the nation's connectivity and provide easier access for low-income families to public facilities.

"Infrastructure development is going to enhance connectivity between one region and another in this country as well as help better distribute economic development," Chatib said on Tuesday on the sidelines of a hearing at the House of Representatives in Jakarta, as quoted by Antara news agency.

He said the government was committed to providing basic needs for the public, in the form of houses, clean water, sanitation, electricity, food and transportation.

"We are going to continue providing stimulus by increasing capital spending on infrastructure," he added.

However, he said that the country was facing several challenges to upgrade its infrastructure, such as limited room in the fiscal sector and high subsidies in other sectors, thus limiting the amount of discretionary spending.

"Thus [...] infrastructure development should be conducted by state-owned firms, the private sector and collaboration between the government and private sector," he continued.


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